Offshore Wind Initiative

Offshore wind power is forecast to be a front-runner in renewable energy industries.

Arthur D. Little Korea analyzed, "South Korea is likely to lead a worldwide offshore wind power market with high-end shipbuilding technical skills, even though its start on the emerging energy field is rather late."

Competition from global corporations getting fiercer, Siemens, Bestase, Alstom, GE and others have already commercialized 3MW turbines and plan commercialization of 5-6MW from 2013.

In case of South Korea, Doosan Heavy Industries & Construction is now under a test operation for 3MW turbine while Hyundai Heavy Industries and Samsung HI are developing 5MW and 6MW turbine, each. Daewoo Shipbuilding & Marine Engineering took over DeWind of Germany with original wind power technology.

The Korean consulting firm said, "Electric power companies are to select offshore wind farm builders from 2013."

UK plans to expand its offshore wind power complex by 25GW until 2020 while the US, Germany and China up to 54GW, 25GW and 35GW, respectively by 2030.

Korea is to construct the offshore wind complex with annual capacity of 2.5GW in South Jeolla Province by 2019.


Published : October 21, 2011

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Hyundai builds LTE network

Hyundai Heavy Industries of South Korea is to be developed as a SMART shipyard, constructing LTE (Long Term Evolution) network.

Ulsan-based shipbuilder and SK Telecom have a signing ceremony for LTE network on 20 October.

Now Hyundai is to construct five-time faster LTE than its existing 3G by December this year.

Hyundai expects to enhance operation efficiency through 'Smart Work.' Managers and staffs would be able to conduct large-capacity data transmission any place in the yard with smart phone or tablet PC and oversee work at the yard from the office in real-time.

Published : October 20, 2011

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Keppel performance strong

Singapore-listed Keppel Corporation has turned in a strong third quarter performance.

The offshore rig builder added $460m to its bottom line, a rise of 36% over the same quarter in the previous year.

Operating profit climbed in a similar leap, increasing by 42% to $520m over period.

Choo Chiau Beng, CEO of Keppel Corp, said that the economic outlook remained uncertain even though Asia’s performance gave cause for cheer.

Nevertheless, the company’s offshore and marine had secured “$8.7bn of new orders to date”, said the ceo.


Published : October 21, 2011

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Daewoo inks two LNG carriers

Daewoo Shipbuilding & Marine Engineering of South Korea is on the march by winning two LNG carriers.

Daewoo revealed on October 19 that it booked two 170,000-cbm LNG carriers totalling slightly over $400m from Stena Bulk of Sweden, with delivery by 2014.

The Stena Group-affiliated shipowner entered LNG market earlier this year with three newbuilding LNG carriers from Daewoo. A major shipping company plans to enrich its LNG carriers and make inroads into LNG market.

Meanwhile, including recent newbuilding contract, Daewoo secured a total of 46 pieces, about $12.5bn of ships and offshore facilities year to date.


Published : October 19, 2011

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TMS develops optimized boxship

Total Marine Services (TMS) of South Korea developed 1,000-teu containership.


A new 1,000 teu satisfies ballast treatment system, EEDI rules, MLC 2006, etc. and cuts down both building cost and operation cost. 


Recently developed boxship is the first fruit of optimization of small-sized commercialship, on the basis of accumulated technical skills from ultra-large commercial ship and specialized ship.


Meanwhile, TMS developed an economized 3,800-teu boxship in March and will give spurs to developing specialized ship and OSV.


Published : October 19, 2011

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Korea Sole Lead

South Korea took the first place for newbuilding order for Q3 with outperforming in high-value ships, such as LNG carrier, drillship, etc.

Ministry of Knowledge Economy and the Korea Shipbuilders' Association's statistical data on October 19 show that Korea took about half of global market share with newbuilding orders of 2.47m cgt totalling $7.2bn during July-September, down in comparison with 4.08m cgt, $16.2bn in Q1 and 5.53m cgt amounting $20.2bn in Q2.

China just won 1.37m cgt, 27.8% of overall new order, in the same period.

Korea won the whole 18 LNG carriers newly ordered in the third quarter, in particular, three of overall five drillships and five of seven large boxships over 8,000 teu. And Korea took 58% of the total tanker orders of 1.74m cgt and 52% of 1.04m-cgt containership orders.

Meanwhile, Korea turns out to have secured 12.07m cgt (299 vessels, $43.6bn) of accumulated new order up to September this year with 51.2% of market share, exceeding China's 7.35m cgt, 31.2% and Japan's 1.11m cgt, 4.7%.

Even though, during Jan-Sept, the total new order in the world was down by 22.3% to 23.57m cgt on the same period last year, Korea went up by 17.2% to 12.07m cgt.

Korean shipbuilders' export in the third quarter was estimated to $12.4bn, increased by 8.4% on the same period 2010, while decreased from $16.4bn in Q1 and $15.5bn in Q2.

Total deliveries during the same period was dropped 36.9% to 106 ships of 2.97m cgt, as well.

January-September ship export of Korea was estimated at $44.3bn, climbed about 23%.

Delivery in the same period took the second place, declined 8.8% to 11.79m cgt, 390 vessels, after China's 13.71m cgt, 832 ships.

In the meantime, Korean shipyards' orderbook by the end of September took 32.9% of worldwide orderbook with 43.14m cgt, 1,369 vessels, which dropped 5.7% and 0.6% from the end of last year and June 30 this year, respectively.

Worldwide newbuilding backlog plummeted by 10.7%, including other major countries' shrinkage, China (-10%), Japan (-24.5%), Europe (-15%), etc. Comparing with such huge drop, Korea's decreasing rate was quite low at -5.7%.

Government prospected market uncertainties for shipping and shipbuilding industry to grow by ship oversupply, depressed ship financing and dull economic recovery in the advanced countries. Also expected, high-value ship's new order boom in the first half was just a short-period demand but to decrease according to adjustment of supply and demand.

In case of bulker and tanker, most of yards except major shipbuilders in the world would keep having a hard time due to decreased orders by a massive oversupply. However, Korean small and medium yards are expected to win new order for small- and medium-sized tanker or boxship with high shipbuilding technical skills.


Published : October 20, 2011

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Offshore Forte

South Korea should keep an eye on rival countries, such as China, Japan, Brazil, Singapore, etc., chasing up Korea in an offshore plant market.

Brazil won eight pieces of hull for FPSO totalling $3.46bn last year and is holding a local content policy with a target to take the world second place in 10 years.

Also, it induces overseas investment and technical support, for instance, Samsung Heavy Industries of South Korea began technical assistance for Estaleiro Atlantico Sul on yard construction and shipbuilding and it took over 10% shares of Atlantico.

Atlantico now takes the first place in Brazil by the virtue of Samsung's technical support and inked seven drillships from Petrobras, a state-owned oil producer in Brazil, in February.

Singapore, an offshore-plant hub of Southeast Asia, dominates global niche market of jack-up rig, FPSO conversion, etc. In 2010, a total of 23 jack-up rigs amounting $5.8bn were newly ordered, including Singapore's 19 pieces and four rigs from China which just entered an offshore plant market. Meanwhile, no yard in Korea builds jack-up rig at the moment even with technical skills, since unit-price for jack-up is rather low.

On this matter, professor Cho Hyo-Jae from Korea Maritime University said, "Jack-up rig must not be overlooked, as overall 500 pieces being under operation in the world."

Now in a massive preparation for future offshore market, China threatens Korea the most. In line with its five-year development plan for offshore facilities, China invested about $18bn for the last five years and additional $45bn is planned to be invested for further five years. Also, it is under construction of the largest offshore plant yards in the world, along the 12.5-kilometer coastline. State-owned oil corporations' investment, exploitation for subsea oil field and other measures are now under discussion, as well.

Also, intense investment on this field is showed in Japan. Inpex Corporation which holds 90% of Masela block in Indonesia is developing the mine and Mitsubishi Heavy Industries completed development of two different sizes of LNG-FPSO. IHI is participating in Petrobras project by establishing a local subsidiary.

Industry sources said, "Offshore plant market is forecast to expand over $50bn every year. Korea has to make great exertions to keep its first place."

Published : October 19, 2011

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Hyundai extends drillship option

South Korea's Hyundai Heavy Industries has given an extension on the time limit on a $615m option to build a second deepwater drillship secured by Norwegian offshore contractor Fred Olsen Energy.

Oslo-listed FOE says it has pushed back the previous October deadline to 20 December but failed to shed light on its reasoning in a filing with exchange authorities.

If the owner indulges in the option, the first-quarter 2014 delivery schedule would remain unchanged.

In April it ordered a drillship designed for water depth capacity of up to 12,000 feet at Hyundai. The unit, which is expected to hit the water in the third quarter of 2013, will also boast five mud pumps, a 165 tonne capacity heave compensated crane and will be capable of accommodating up to 210 people.

Published : October 18, 2011

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STX expands marine-engine market

South Korea's STX Engine has additionally made a license agreement of 17AHX newly developed engine with Niigata of Japan, with which STX Engine having made a long licensing relationship. Also, STX is to build its production system and secure strong foothold in a global small-size auxiliary engine market.

STX have mainly produced main/auxiliary engine of MAN Diesel & Turbo, in case of marine engine. STX made an additional licensing contract for 500~900KW engine with Niigata due to cost competitiveness of small-size engine and customers' preference over 900RPM.

Newly licensed 17AHX satisfies IMO Tier 2 level with boastful fuel efficiency and is also designed to be able to work on-land power generation.

STX plans to capture Korea and China in the beginning and expand to Japanese market, where owners prefer its local engine, with a target of selling 300 pieces in a year.

It is now in a preparation to make deliveries from the second half 2012 and will make every effort to lead a small-sized engine market.


Published : October 17, 2011

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STX expands marine-engine market

South Korea's STX Engine has additionally made a license agreement of 17AHX newly developed engine with Niigata of Japan, with which STX Engine having made a long licensing relationship. Also, STX is to build its production system and secure strong foothold in a global small-size auxiliary engine market.

 STX have mainly produced main/auxiliary engine of MAN Diesel & Turbo, in case of marine engine. STX made an additional licensing contract for 500~900KW engine with Niigata due to cost competitiveness of small-size engine and customers' preference over 900RPM.



Newly licensed 17AHX satisfies IMO Tier 2 level with boastful fuel efficiency and is also designed to be able to work on-land power generation.



STX plans to capture Korea and China in the beginning and expand to Japanese market, where owners prefer its local engine, with a target of selling 300 pieces in a year.


It is now in a preparation to make deliveries from the second half 2012 and will make every effort to lead a small-sized engine market.





Published : October 17, 2011
 

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Hyundai-Sungjin LNG plant deal

Sungjin Geotec of South Korea announced on October 14 that it sealed a contract with Hyundai Heavy Industries for LNG plant facility amounting KRW 83.05bn ($72m) for Gorgon LNG project on 13th.

Sungjin received a letter of award in July from Hyundai Heavy Industries to supply 13 plant modules for LNG liquefaction, refinement and production, with delivery by February 26th 2013.

CEO Kim Jang-Jin, Sungjin, said, "Australia's Gorgon project is an opportunity to show Sungjin's technical skills for construction of LNG plant modules. Starting with this project, we will expand business in Asia-Pacific area, concentrating on new orders for oil- or gas-related plants."



Published : October 17, 2011

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SPP inks $1.2bn orders

SPP Shipbuilding of South Korea has recently won a newbuilding order for two plus one optional 52,000-dwt products tankers from Eastern Mediterranean Maritime (EastMed) of Greece.




SPP revealed the ships are set for delivery by the end of 2013 with a price tag of around $37m each.



Recently ordered PCs are newly developed fuel-efficient type, up-graded from SPP's existing 50,000-dwt PC.


Meanwhile, SPP has inked a total of 31 orders for bulkers, tankers and boxships worth $1.2bn in total this year and MR PCs were massively ordered this year, in particular.



As it targets $1.5bn fresh orders annually it has already met 80% of its aim.





Published : October 18, 2011

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